Destructive competition among producers can cause significant drop in the overseas marks

In this issue of the magazine we have an interview with Masoud Kamali ardakani former Commercial Counselor of Iran in China about the handmade Carpets and the reception in the course of their responsibility as advisor to the business of handmade Carpet

in China. Currently he is working at the National Carpet Center Research Institute as an adviser to Iran’s National Carpet Center business.

+ Mr. Ardakani would you Please tell us a brief explanation of your activities in the past, especially in China as a Commercial Counsellor?

Hi dear readers of the Kohan magazine. I spent four years since 2009 to 2013 as a Commercial Counselor of Iran on behalf of the Ministry of Industry, mine and trade at the Iranian embassy in China was engaged in investigating the Chinese market. My main task is gathering information from the Chinese market and its reflection to the private sector and the country, Identify opportunities in the Chinese market and offer it to domestic producers, removing obstacles and problems that Iranian businessmen in the Chinese market, and notification of state laws and regulations and trends and developments that had taken place in the market. Specifically on the issue of export to the Chinese market in the field of crafts, carpets, food and tourism research and then took action.

After returning to Iran, I’m adviser at the Iran’s National Carpet Center business.

+Mr. Ardakani, Do you have statistics or reports of Iranian handmade carpet exports to China in the first six months of 95(2016)?

Recent statistics from the Customs is reflected from seven months 95(2016).

At the same statistics, Iran’s carpet exports in the world is about 170 million dollars specifically for the Chinese market was $ 2.2 million. The export over the previous year to The rest of the world as well as in China has grown slightly. The highest export growth is mainly related to the global market and it is because of JCPOA (Joint Comprehensive Plan of Action) and re-enter America as the buyer of Iranian carpets.

+ How was the Carpet Export after JCPOA? Is there any Changes in our exports?

After JCPOA most important change in the foreign market, reopen America market for Iranian carpets. We, in the years before sanctions Up to 80 million dollars were exported to America market. In fact, America was the biggest buyer of Iranian carpet before the sanctions. Once issued resolutions and sanctions applied our market completely lost for more than 5 years. Even this disconnection and lack of exports to our market in other countries also affected. The latest statistics from the application and the export of carpets to America I have is that, by the end of this year, the trade volume between the two countries in the field of carpet will be approximately $ 40 million.

In any case the effect of the JCPOA was that, the boycott of Iran’s carpet was removed and it was also in action today and we can easily be exporting carpets to America or any other country.

+ Potential that the Iranian carpets in the Chinese market has created what could it be? Is the Iranian carpet designs are so strong that they can change the taste of the Chinese people and causing Chinese people to be more interested in Iranian carpet?

In my opinion the Chinese market would have no effect on Iran’s Carpet main structure. First, map, design and color of the carpet is very diverse. We have been able to identify the tastes of the Chinese people that part of the plan that is most consistent with Chinese culture into the Chinese market offer. At the same time merchants and companies that are active in the Chinese market, to the fact that China is a big market and great ethnic and cultural diversity have special attention. When you go from North China to South China, people’s speak, dress, tastes and generally the overall culture change. Because of this diversity of culture and ethnicity, those who have tried to enter the Chinese market and ethnic cultural elements of the area in use colors and designs. Even some traditional images of people and companies specific area depicted in the form of carpet.

+ If it is possible, please say us more specifically most welcome which of the Iranian carpet designs or products in the Chinese market are related to this field?

I can not answer detailed questions you answer in this way, but I know and I am aware of carpets has been the greatest attention in the Chinese market. The use of carpet in the Chinese market as a luxury item and decor, not as a means to spread the floor. After carpets, silk carpets are also welcome because they are more convenient and considerable delicacy among the Chinese people are.

+In fact, Persian carpets as a luxury item for the customer in the Chinese market and Chinese market demand and had little difficulty with the high prices of Persian carpets

Mainly our reason to entry into the Chinese market is because the carpet is a luxury product, and the Chinese people for the sake of economic growth over the past decade has increased wealth and purchasing power. These people are not looking to buy Chinese goods, because they thinking of luxury and foreign original goods. By this logic we have entered the Chinese market in order to be able to take over part of the market that demands our luxury goods we chose carpet. At the same time, because of our carpets are produced in different categories in terms of quality. For example, in West China, which is a less developed area rugs of wool products was more demanding, but in Shanghai and Guangzhou that people have a better economic situation and affluent people are somehow less the buyer of wool carpet.

+One of the problems is that foreign markets with Iranian producers and the it’s more in foreign exhibitions as well as some producers also complain of the fact, is the difference between the prices of products in foreign exhibitions from the manufacturer, which causes confusion and mistrust purchased. What is the key to eliminating this difference in price?

It is important when we enter a foreign market is a huge problem and it is malicious competition that makes us lose that market. I actually do not believe that to be a government agency to fix the prices. But in fact the kind of approach, management and education of our private sector is concerned. Look We need to know when we can reach a favorable outcome in the field of exports that could teamwork and how we individually will not be anywhere. our producers must realize that we can’t do anything by law, order or regulation, because this is a business culture and unfortunately, many of our tradespeople are looking for their personal interests. The only solution is that the private sector decides to consider the long-term benefits. If there is something in this regard exporters can have the greatest impact. For example, Chinese manufacturers at the fair thing to do is to define all the products a price. But it is not in Iran, when the external consumer is faced with the difference in price extremely confused their approval of the Iranian goods as a result of purchases occur.

+What Kinds of carpet production so that we can be successful in the Chinese market more than ever before?

Iran is China’s first exporter of handmade carpets. More than 30% market share in China to our country and our producers. And what carpet with what we generate maps did not matter. Most important thing is that, what we have quality on the market, how do we introduce ourselves, in addition to these issues and try to have a long-term view on the market retains originality and identity of our product into the market, and don’t destroyed each other’s prices. These are important issues.

The Chinese market is so big and cultural diversity in this market is so large that each plan has its own buyer, now every exporter with a market in which there can color and design for manufacture and supply to the area. But in carpets you can view drawings or paintings or popular characters in the area use it. For example, in Xining there is a view of a lake that is important for residents, so manufacturers started to think that the lake in their designs, which incidentally also the carpets were well-received.

+Mr. Ardakani, you were in years as councilor of Commerce in China, when we felt all sorts of restrictions on Iran bank sanctions to a variety of trade sanctions. What was your strategy in this situation for exports? How did you manage to be successful in the same years as first counselor?

The interesting thing is how we were able to enter the market including the Chinese market we are under sanctions. We are looking for an alternative market were under sanctions, but maybe someone did not think about China. The first thing I did, was study about Chinese market, study about China’s economic growth, consumer behavior in the external environment, such as shopping centers, consumption patterns, interests middle class, the rich class. All of this suggests that the Chinese show interest to foreign goods. I, as representative of the state foreign trade department I came to think that what is good for the market can supply. Naturally, I am not able to import industrial products into China. The most important thing you could do was the carpet in my own country or other crafts or tourism or special food to the Chinese market in the meantime I chose carpet. Our first action in this regard due to the fact that we wanted to get into the market and must comply with all aspects and we would carefully enter the market. In fact, we did a presentation. The next step was to organize exhibitions in different cities of China. In 1391(2012), China held more than 40 exhibitions in twenty major cities. Basically, the Chinese had no knowledge of Iranian market, and much of the time we were wrong with Iraq. Today, after eight years in the Chinese market stores Persian carpets and handicrafts in conjunction with the two sides have taken place.

+Which one is most of our exports to China in the field of textile, Handmade Carpet

or moquette (machine-made carpet)?

Most of our exports are now machine-made carpet, but the handmade arpet was once owned.

Because for the first time handmade carpet were exported to China.

+How do you evaluate the next six months in the field of export or domestic market for handmade carpet? Due to the events that occurred in the election of Mr. Trump America will have an impact on Persian carpet market?

I do not believe it that the elections have a negative impact on our carpet market. Vice versa a market that was lost due to the sanctions have gained again, and this will boost the export of Persian carpets. My overall prediction is that there will be a growing trend. In the Chinese market, we note that the market should not lose sight of.